Apple's Newest iPad Is The Least Expensive To Manufacture

Advertisement

apple ipad air ad

Apple

AllThingsD got its hands on a report by research firm IHS that explains that each iPad Air costs between $274 and $361 for Apple to manufacture.

Advertisement

The fluctuation there depends on things like storage space and 3G/LTE capabilities. Adding those features adds cost, naturally.

Considering that the devices start retailing at $499 and go all the way up to $929, it's only good news for Apple.

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

The iPad Air's display is more expensive than previous generations, but the components still end up totaling $42 less than the base model third-generation iPad because there's not much else new on the inside.

From AllThingsD:

Advertisement

Yes, there's a new Apple chip, the A7, but at an estimated cost to Apple of $18 (Samsung still manufacturers it for Apple under contract), it costs five dollars less per unit than the A5 processor did 18 months ago. Dialog Semiconductor produces a power management chip that goes with it, though this one is bigger than one seen in the iPhone 5S.